How do people who fire metaverse make money? A virtual house sold for 200000, and the coin circle “cutting leeks” reappeared

China Economic Weekly reporter Guo Jiyao reports from Beijing

Metaverse is on fire.

Overnight, WeChat’s circle of friends, official account, micro-blog, and Xiao Hong began to discuss the words first appeared in science fiction. Although the industry has not yet formed a unified definition, metaverse has become popular with the naked eye in the currency circle, chain circle, science and technology circle and venture capital circle.

“Metaverse first caused a sensation in China’s capital circle. The reason for the popularity of this concept is the ‘wealth effect’.” Xing Jie, author of metaverse pass and chairman of Youshi capital, said in an interview with China Economic Weekly.

At present, perhaps no one can give metaverse a precise definition, but it seems that many people believe that it will be the next wealth myth, through which they can achieve sudden wealth. Under the huge wealth effect, bubbles and chaos also follow.

The price of virtual sea view house is 200000. Does metaverse also speculate in real estate?

“What happens in the physical world will also appear in metaverse,” Yu Chen, co-founder of Yibao payment, told China Economic Weekly. He is also one of the authors of metaverse pass. According to his description, in this virtual world, you can buy real estate, hold parties, shop, work and create art. These behaviors are very similar to the real world. “What you do in the physical world can be done again in metaverse; what you can’t do in the physical world can also be done in metaverse, because metaverse has no physical conditions,” he said.

As the rigid demand of the real world, “live” also continues to the metaverse world. After entering metaverse, buy a piece of virtual land first, which has become a “wealth classic” for some people.

Metaverse’s real estate speculation may be no worse than the real world. According to foreign media reports, when decentraland, a virtual world based on the Ethereum blockchain, held its first land auction in 2017, some plots sold for about $20. Now, just four years later, the transfer price has reached hundreds of thousands of dollars.

Recently, tianxiaxiu digital technology group launched its research and development of virtual social metaverse app – honnverse rainbow universe, which is open to the first batch of users. The product has been launched for two weeks, and the number of test appointments has exceeded 130000. Recently, when opening the online limited edition virtual real estate reservation number grabbing activity, the server crashed due to the large number of participants.

According to the official news of tianxiaxiu, the “Rainbow universe” platform will issue 350000 sets of virtual houses in total. These virtual houses have 13 types according to different landforms of planet P. the circulation and scarcity of each type are different. The house is divided into SSS, SS, s, a and B levels from high to low. The higher the level, the rarer it is.

At present, on some second-hand trading platforms, the prices of some “scarce real estate” in honguniverse are constantly fried. On November 21, the reporter logged in to the free fish app and found that a set of virtual real estate of rainbow universe “SS Sea Island” with a rarity of 0.12% had a hanging price of 100000 yuan. Below, someone offered 120000 yuan. More users hung up a set of “SS Sea Island” virtual real estate with “top 5 of land lease number”, with a price of 200000 yuan. As of November 22, a total of 3 people “wanted”.

A microblog user who grabbed the virtual real estate of honguniverse posted a post saying: “I have made a rough house in honguniverse, which is now worth thousands. During this time, the concept of metaverse has been hot. See if the house can rise to millions in a few months. If it can rise to millions, I will sell it and buy a house in Beijing.”

With regard to the current speculation on the company’s virtual real estate, tianxiaxiu publicly said: “we do not support or encourage it. As a laboratory product, honguniverse still has great uncertainty. I hope users can treat it rationally.”

Real world houses are physical space entities that can be used for living. Once the existence of such an entity is called virtual, it may seem impractical. What is the use of such virtual real estate?

It is reported that, similar to the real estate in the physical world, metaverse’s land can be created, invested, owned, leased and sold by users in the virtual world. It can be used not only as a living space, but also as a commercial and working space. For example, in the virtual world decentraland based on Ethereum blockchain, users can build operating enterprises on this virtual land after purchasing virtual real estate, such as nightclubs that charge other users access fees, stores that sell virtual goods, etc.

In metaverse, geographical location and supporting facilities are often the most important factors affecting the price of virtual real estate. In decentraland, land close to popular areas is usually more valuable than other land, and if good supporting stores or facilities are built around a land, the price of the land can also increase – which is the same as in the real world.

According to foreign media reports, when Korean youth buy a house in metaverse world, the land in Jiangnan District of Seoul in the center of the real world is still the most popular in the virtual world.

The popularity of virtual real estate has also driven the surge of relevant virtual currencies. Recently, mana, a virtual currency that can be used to buy metaverse land, was fried four times higher. “Among the metaverse coins, mana and sand are the leaders. Both of them buy and sell land, which means that the speculation of metaverse should also start from the speculation of real estate.” a blogger who has long paid attention to virtual currency wrote on his microblog.

The chaos of “cutting leeks” in the coin circle reappears in the metaverse boom?

“Not only real estate, but many commodities that can be fried in real life are constantly fried as NFT in metaverse,” Pan Da, who has worked in the digital asset industry for many years, told reporters.

The so-called NFT is the abbreviation of non functional tokens, which means non-homogeneous tokens. It is a data unit on the blockchain digital ledger. Each token can represent a unique digital data. Because they are not interchangeable, non homogenous tokens can represent digital files, such as paintings, sounds, videos, items in games or other forms of creative works. Although the documents (works) themselves can be copied indefinitely, the tokens representing them can be tracked on their underlying blockchain to provide proof of ownership for buyers.

In short, NFT transforms digital art and other goods into unique and verifiable assets that are easy to trade on the blockchain. This unique attribute also makes NFT have the characteristics of combination with art.

In March this year, the digital art work of illustrator beeple, a picture called every day: the first 5000 days, sold for a sky high price of $63.9 million at Christie’s auction. This picture is made from the collage of beeple’s paintings every day in the past 13 years. After being made into NFT, this picture was taken from $100 and finally sold at 700000 times the price.

In China, sun Yuchen, the founder of the wave field of “trendsetter” in the currency circle, said on social media a few days ago that he bought NFT wechat avatar for $10.5 million, which detonated the public opinion field at once.

Panda told reporters that after the metaverse fire this year, he was pulled into a wechat group called “metaverse expedition”. According to him, some people in the group often publish NFT related information and invite members to “do tasks to upgrade NFT works of art”. “The so-called ‘doing tasks’ generally requires members to forward promotion everywhere to attract traffic, and then they will continue to open some online promotion activities to hype the price of NFT,” panda told reporters.

“It has the same meaning as art auction. The makers turn their hands on each other, bid up prices, earn handling fees on the platform, and finally we cut leeks together. But at least art is of artistic value. Now many NFT works of art are shoddy,” panda said.

In response to these sky high prices of NFTs, a metaverse best-selling author who declined to be named told reporters that he didn’t think it was necessary to be surprised by this phenomenon. “This price is determined by everyone’s consensus. Some people think it is worth it. Just like luxury goods, many people also think these famous brand bags and famous brand jewelry are worthless, but someone is always willing to pay for them.”

In this regard, Dr. long Baitao, an independent researcher of blockchain and monetary finance, holds different views. He believes that the essence of “creating value based on consensus” is a deflationary model. Traditional luxury goods, bitcoin, most digital currencies (now with digital works of art such as NFT), as well as traditional pyramid schemes and Ponzi financial scams, all have the characteristics of a deflationary economic model. “We recognize that the deflationary economic model has its rationality and necessity in a certain range, such as the luxury industry, but it can not be used as the basic guiding economic model of large-scale economic system. For example, the development of human society will not deliberately reduce food production with the development of productivity, thus pushing up food prices. This is an unreasonable economic model Model. “

In addition, long Baitao believes that NFT and digital art have their rationality and necessity, but they can not exist as large-scale economic phenomena. “Just like an economic system, there are physical parts and virtual parts, but if the weight of the virtual part exceeds the physical part, the economy will eventually collapse. A society will not create more wealth because everyone participates in hyping NFT and constantly pushing up its price. NFT and digital art are just a means of wealth redistribution, and everything may be In order to make the latecomers more convinced and comfortable to accept the offer at a higher price. “

“I know some people in this group. They are from the ‘coin circle’ in the past.” panda told reporters that most people in the “metaverse expedition” have had the experience of “frying coins”.

Now, many activities with NFT names in the group are actually another way of “issuing money”.

“There is often a so-called NFT activity message that invites group members to participate, and participants can get ‘virtual currency’. The initiator will ask participants to continue to pull people to spread. The more people they pull, the higher their level in the activity, and the more money they can get.” panda showed the news in the group to reporters. The chat information in the group shows that several wechat users have released similar activity information and called on other members to join the association with the reward of “sending money”.

In this regard, long Baitao commented: “the profit model of such hot pursuit projects is nothing more than packaging with fashionable words and attracting investors’ participation. The purpose is to sell the projects to later investors at a higher valuation.”

Such a thing is not an exception. Recently, the Securities Daily reported that in the so-called QQ group related to metaverse with more than 1800 members, there was little discussion on metaverse technology and training. Most of them were discussing how to fry virtual currency and how to mine.

This year, relevant departments around the country have issued regulatory policies to screen and shut down virtual currency “mining” projects, stop power supply to such projects, and eliminate virtual currency has become the general trend. In such an environment, metaverse’s fire may bring new excitement to the coin circle.

“The people who cut the leeks are a group of people. Many people who stir fry money have changed. They hang a metaverse name and continue to issue air coins. It’s not that metaverse is bad. It’s always the people who cut the leeks.” Xing Jie said.

How does metaverse heat spread?

In an interview with reporters, several authors of metaverse bestsellers said that at present, the unified concept of metaverse has not been formed, and no one can give a precise definition of metaverse. But when asked whether metaverse will become the next wealth myth, they all expressed their affirmation. Among them, some people compared metaverse to “the Internet in 1994”. “The emergence and development of any new thing will experience certain bubbles, but this does not hinder their development.”

Now, metaverse is already out of the circle. According to an author of metaverse and metaverse pass, one of the books has sold more than one million.

Before this year, the concept of metaverse was only discussed in a small scope in the science and technology circle. At that time, there was no translation of “metaverse”, but it was called “hypermeta domain”. The major node that makes it the focus is the sharp rise of roblox (rblx. NYSE), known as the “first stock of metaverse”.

“The primary reason is the ‘wealth effect’,” Xing Jie said. In the first half of this year, the news of roblox’s sharp rise greatly stimulated the domestic capital market. The metaverse concept began to appear frequently, and related concept stocks also rose. The data show that from September 1 to November 17, the average increase of 85 concept stocks in metaverse in the A-share market was 24%; 31 stocks rose by more than 20% and 14 stocks rose by more than 50%.

According to Xing Jie, metaverse’s popular path is capital circle – Internet – public. Originally as a science fiction concept, metaverse is not the science and technology circle, but the capital circle. In this regard, Zhao Guodong, Secretary General of Zhongguancun big data industry alliance, said in an interview with reporters that there are two main reasons: one is that China has a larger application market and more opportunities; The other is that China’s relevant technology accumulation is not sufficient.

Long Baitao believes that in the face of the current “metaverse fever”, we should understand the forces behind this upsurge. “At present, a large part of this is behind a group of forces that have mastered the first mover advantage and voice of infrastructure in the blockchain and digital currency world, hoping to achieve ‘centralization and institutionalization’ in practice through apparent centralization. The mechanism that dominates resource allocation and regulates human activities in the real world is the state and law; if not in the virtual world What is the subject of national boundaries, maintaining resource allocation and regulating human activities? It appears to be a ‘code’, but it is actually the group of forces behind it. “

“We should distinguish between productive activities, consumer activities and speculative activities carried out by metaverse. We should use metaverse technologies and concepts to improve the efficiency of human communication and collaboration (such as teleconference, training, operation, etc.) It is productive activities; using metaverse to provide immersive games and sensory stimulation is consumer activities; various financial activities using metaverse concept, such as currency issuance, financing, trading, etc., may be speculative activities. The basic principle should be to encourage productive activities, guide consumer activities and strictly control speculative activities. “Long Baitao said.

Previously, the sharp rise in the share prices of a number of metaverse concept stocks has attracted the attention of regulators. According to incomplete media statistics, since November, many companies such as zhongqingbao, Shengtian network, tianxiaxiu, Dafu technology and Yishang display have received attention letters or inquiry letters issued by Shanghai and Shenzhen exchanges. Metaverse plate, which has been rising for many days, also ushered in “cooling”. On November 18, the metaverse plate fell sharply by 3.34%, the first time since November 2. Among them, 14 concept stocks fell by more than 7%, and Dafu Technology (300134. SZ), Shengtian network (300494. SZ) and Shunwang Technology (300113. SZ) led the decline.

(at the request of the interviewee, Pan Da is a pseudonym in the text)

Editor in charge: Yao Kun

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